Question

Steven and Emily Campbell are planning to open a casual dining restaurant in downtown​ Akron, Ohio, and need​ $125,000 to get started. They have​ $50,000 of their own​ money, which leaves​ $75,000. After getting turned down by a couple of​ banks, they decided to turn to their relatives and acquaintances for help.​ Fortunately, they were able to raise the money through a gift from​ Steven's grandfather, a loan from​ Emily's parents, and a small investment by​ Steven's best friend in​ college, Doug. The money that an entrepreneur raises in this manner is referred to as​ ________.

Answer 1

3Fs (Friends , families and fools)

Step-by-step explanation:

One of the sources of raising capital for small scale business is through the families , friends and fools

The families and friends are always willing to help to the best of their capacity if the need arises , and as such , they are seen as a reliable way of obtaining capital for business , most especially when other sources fail.

The fools explains the high risk involved in being part of an early stage of a business most especially when adequate security against loans and liabilities are not available.